The bill proposes the establishment of a medical debt relief program within Chapter 35-4 of the General Laws, titled "State Funds." This new section, 35-4-21.1, would be administered by the general treasurer and involves the purchase, cancellation, and forgiveness of medical debts under specific conditions. The conditions for medical debt relief include: the debt must have been incurred for medical services, products, or devices; the debt is in collection or has been sold or assigned by the original provider; and the debtor is a citizen of the state with a federal adjusted gross income of 400% or less than the federal poverty line, or the debt exceeds 5% of the citizen's adjusted gross income.

The bill also stipulates that citizens whose medical debts are discharged will be notified of the cancellation but will not have the cancelled amount included as taxable income for state income taxes. The definition of medical debts is to be interpreted broadly to encompass various medical-related expenses. Additionally, the general treasurer is required to provide quarterly updates on the program to the finance committees of both the house and senate starting January 1, 2025, and may establish regulations to implement the provisions of this section. The act would become effective immediately upon passage.

Statutes affected:
2712: 19-14.9-3, 19-14.9-14